NORWALK, Conn., Sept. 22, 2021 /PRNewswire/ -- Hoya Capital Real Estate – an award-winning ETF issuer and research-focused investment advisor – announced the launch of its second fund, Hoya Capital High Dividend Yield ETF (Ticker: RIET).
RIET tracks the Hoya Capital High Dividend Yield Index ("RIET Index"), a rules-based index designed to provide diversified exposure to 100 of the highest dividend-yielding real estate securities in the United States.
RIET expects to pay monthly distributions. The RIET Index Dividend Yield as of 8/31/2021 is 6.70%.* Click here to view yields and standardized performance.
The RIET Index includes 100 high dividend yielding common and preferred securities issued by Real Estate Investment Trusts ("REITs") and real estate operating companies. The selection process incorporates a quality screen to identify REITs with lower leverage and begins by selecting ten "Dividend Champions." Securities are then selected based principally on dividend yield with diversification targets across real estate property sectors.
The launch of RIET follows the successful launch of Hoya Capital Housing ETF (Ticker: HOMZ), which recently surpassed $80 million in assets under management. HOMZ was awarded the Most Successful & Innovative ETF Launch of 2019 by ETF Express and is the lowest-cost ETF out of 5 funds in the ETF Database Homebuilders category.1
"RIET exclusively targets the income side of the real estate sector, making it the perfect complement to HOMZ, which seeks to invest in some of the fastest-growing real estate securities," commented Alex Pettee, CFA, Director of Research at Hoya Capital. "With RIET and HOMZ, investors are now able to better align their portfolio with their specific investment objectives – whether it be higher income or higher growth."
Professor Jonathan Morris of Georgetown University and founder of REIT Academy commented, "RIET is particularly innovative because it achieves its premium yield not by going all-in on the riskier segments of the real estate sector, but rather by expanding and redefining the real estate investible universe."
"The diligently researched index selection process incorporates innovative exposure to both common and preferred stock, plus a well-crafted mix of exposure to real income-producing assets through its holdings in companies across the broader REIT universe," concluded Professor Morris.
Hoya Capital also announced a fee waiver for RIET, lowering the net expense ratio to 0.25% from 0.50% until at least September 30, 2022, providing immediate value to investors at launch.
"For investors seeking income in a simple and cost-effective package, we believe RIET fills a significant and immediate investor need," concluded Hoya Capital CEO Sheila Pettee, CFA. "When investing in real estate, investors should remember 'I before E' in RIET because Income Comes First."
Alex Pettee, CFA
President, Director of Research & ETFs
About Hoya Capital Real Estate
Hoya Capital Real Estate ("Hoya Capital") is a research-focused Registered Investment Advisor headquartered in Rowayton, Connecticut. Founded with a mission to make real estate more accessible to all investors, Hoya Capital specializes in managing institutional and individual portfolios of publicly traded real estate securities, focused on delivering sustainable income, diversification, and attractive total returns. For more information, visit www.HoyaCapital.com.
Performance quoted represents past performance, which is no guarantee of future results. Investment returns and principal value will fluctuate, so you may have a gain or loss when shares are sold. Current performance may be higher or lower than that quoted. Short term performance is not a good indication of the fund's future performance, and an investment should not be made based solely on returns. Performance for periods greater than one year are annualized.
The Funds' investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus and summary prospectus contains this and other important information about the investment company. The prospectus can be obtained by calling 1-833-HOYA-CAP or visiting www.TheIncomeETF.com. Please read it carefully before investing.
Investing involves risks. Principal loss is possible. The fund is passively managed and attempts to mirror the composition and performance of the Hoya Capital High Dividend Yield Index. The Fund's returns may not match due to expenses incurred by the Fund or lack of precise correlation with the index and may at times not hold or be fully invested in the same securities as the index. The Fund's investments will be concentrated in real estate-related industries. Investments in real estate companies involve unique risks. Real estate companies, including REITs, may have limited financial resources, may trade less frequently and in limited volume, and may be more volatile than other securities. Many factors may affect real estate values, including the availability of mortgages and changes in interest rates. Real estate companies are also subject to heavy cash flow dependency, defaults by borrowers, and self-liquidation. Compared to large cap companies, small and mid-capitalizations companies may be less stable and their securities may be more volatile and less liquid. The Fund is new with no track record to evaluate.
ETF shares may be bought and sold in the secondary market at market prices and are not individually redeemed from the Fund. Brokerage commissions will reduce returns. Although it is expected that the market price of Shares will approximate the Fund's NAV, there may be times when the market price of Shares is more than the NAV intra-day (premium) or less than the NAV intra-day (discount) due to supply and demand of Shares or during periods of market volatility.
Hoya Capital High Dividend Yield Index seeks to provide diversified exposure to 100 of the highest dividend yielding real estate securities in the United States, utilizing a rules-based methodology to select U.S. exchange-listed real estate securities that collectively provide income through high dividend yields. Securities are selected to the Index through a multi-factor, tier-weighted process that selects components based principally on dividend yield with diversification targets across property sectors and market capitalizations.
*It is not possible to invest directly in an index. An investment in the fund is subject to fees and expenses. Distributions are not guaranteed. Diversification does not assure a profit nor protect against loss in a declining market.
Index Dividend Yield: The weighted average of the underlying indicated annual dividend divided by price, expressed as a percentage. The indicated annual dividend is calculated as the most recent regular cash dividend multiplied by the distribution frequency. Source: Bloomberg.
(1)Lowest expense ratio out of 5 US-registered ETFs in the ETF Database Homebuilders ETF category as of 8/31/2021. Expense ratio data for other ETFs were obtained from the funds' prospectuses, data pulled as of 8/31/2021. ETFs in the same ETF Database category may track different indexes, have differences in holdings, and show different performance.
ETF Express Award Methodology
Awards are based on a "peer review system" whereby ETF Express readers – including institutional and high net worth advisors, managers, and other industry professionals at fund administrators, prime brokers, custodians, and advisers – are invited to elect a "best in class" in a series of categories via an online survey. There were 1,202 votes cast in total. ETF Express worked with Algo-Chain to pre-select ETF Providers in each category based on investment performance during the twelve month period of May 2018-May 2019 leading up to the award selection. Subjective categories did not have pre-selected categories. In each category, the firms with the most votes at the end of the voting period were subject to a final review by ETF Express's Senior Editorial team. Awarded on October 24, 2019.
Hoya Capital Real Estate serves as the investment advisor. The Funds are distributed by Quasar Distributors.
SOURCE Hoya Capital Real Estate